For the same reason there were no competitors to daraprim before Martin Shkreli decided to be a complete ja. When the price is low enough that there's little profit to be had, nobody bothers competing because it's not worth the time, money, and effort to get FDA approval. When the price gets jacked up like that, you will find generics pop up quickly. The problem is the window between the price hike and when generics pop up can sometimes be years due to needing to get FDA approval.
In this case there was a competitor, but they recently had their product pulled from the market in an FDA recall. So Mylan decided: why not raise the price 600% (and rising) when it's a drug people HAVE to have.
Capitalism in action baby. Let's deregulate EVERYTHING!
If EVERYTHING were deregulated, the time, money, and effort to get FDA approval would also vanish along with this particular problem. Would other worse problems appear in its place? Maybe. But calling foul on free-market capitalism in the very most regulated market in the US is a bit disingenuous.
Hmmm... from your description, it sounds like the market is working, just not fast enough for everyone.
It's not worth it for a company to develop their own Epi-pen since profits are so low. Eventually enough drop out that one manufacturer raises the price. Significant profits result which attracts other competitors. Prices drop.
Would you just prefer the gov't to step in and set the price? What happens if companies decide it's not worth the effort? Have the gov't force them to produce the product?
> Would you just prefer the gov't to step in and set the price? What happens if companies decide it's not worth the effort? Have the gov't force them to produce the product?
Cut out the private market and have the government manufacture it directly.
Because there's no equivalent of the bioequivalence study that generic drugs go through. Even if it's an exact copy, making a generic medical device means you have to go through the same entire approval process that the original went through.
